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Lenovo Buys Back Mobile Phone Business

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At least it realised its mistake...

Having rather unwisely offloaded its mobile phone division to investors for $100m in January 2008, Lenovo has spotted that it was a mistake of rather epic proportions and bought it back - for $200m. So that's a wrap on the knuckles and a $100m penalty for being daft.

"As Lenovo's global PC business continues to make steady progress, we view mobile Internet as a key growth opportunity moving forward globally," said Lenovo CEO Yang Yuanqing while rather ignoring the question everyone has on their lips.
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Let's ask it: WHY sell off the business in the first place? Actually, there is some logic. Lenovo was short on cash at the time and needed the money so when investors offered $100m to take the then-unprofitable arm off its hands it seemed like a good move. Since then Lenovo's PC business has improved and at the same time those crafty investors have transformed Lenovo mobile into a profitable business that is now ranked number three in China's handset market and is the number one domestic brand! Consequently Lenovo felt ready to splash out again, especially when it admits:

"Industry analysts project the China mobile Internet market will grow to exceed US$16 billion by 2014, fueled {sic} by the rapid evolution of 3G mobile broadband and accompanying multimedia Internet services."

Who'da thunk it?

As for those investors, anyone got their number...?

Link:
Press Release

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